how do you recognise when volatility is dead?

Discussion in 'Technical Analysis' started by mounafia, Jul 9, 2010.

  1. mounafia


    I usually lose money when the market range.

    For exemple, I have been trading since the morning (I live in France) the Eur/usd making some nice moves (the biggest being a 49 pips move from 1.2668 to 1.2619).

    I usually daytrade taking move from 10 to 80 pips according to what the market is giving me. (I use Moving average)

    The problem is that for exemple today, the Eur/ usd suddenly stopped moving 6 hours ago ranging between 1.2635 and 1.2650 (15 pips range…for hours!)

    I try to use the BB to find this kind of range and avoid it but before realising that the market was dead I tried 6 trade losing 6 to 10 pips on each trying to take some move that never came.

    So I would like to know if there is any indicator other than the BB that would allow me to see faster that the market is dead.

    I don’t want to learn to scalp when the market is ranging in 15 pips (I tried and I am just not good at it…too stress). I just want to be able to see it fast and avoid this kind of market.

    Any advice? Any tools I can use? How do you know when it is time to stop trading because the market is going nowhere? How do you recognise day to avoid?

    Thanks in advance
  2. mounafia


    no idea?
  3. Average True Range, Implied Volatility, Historical Volatility
  4. Celine


    One way is to make sure you trade during volatile periods. Mornings, espeically near openings and also near end of sessions. The bits in between is typically slow. Same applies for forex, stocks and futures. Also for forex the session overlaps between geographical resgions is very volatile for most symbols.
  5. You see a pig-tailed idiot,a black man and a sun burnt white boy dancing on its grave.
  6. DDK89429


    I usually look at candlesticks and note the range; high vs low, if that narrows it can indicate a lessening of volatility...this applies to the stocks I trade & monitor, don't know if it would be relevant to other trading instruments.
  7. Arjun1


  8. I always use manual scale charts. That way you get better perspective on the current volatility.
  9. David70


    Especially lunch time between 12:00 to 14:00 worth time to trade, very choppy
  10. schizo


    Simple. Just draw the damn lines at the high and the low of the range. Don't trade until one of them gets taken out.

    Be that as it may, there is a way know in advance, but I highly doubt anyone will reveal their edge outright. Unlike all the hypes that surround the subject of edge, I believe this really is an edge.
    #10     Jul 10, 2010